EUR/USD could test 1.0700 before Christmas – ING

EUR/USD is holding marginally above 1.0600. The pair could test 1.07 in the coming days, economists at ING report.

Sidelined, for now

“It’s likely that the downward pressure on the Dollar from the BoJ’s hawkish shift has been fully offset by the deterioration in risk sentiment, which negatively impacts the pro-cyclical Euro.”

“There are lingering downside risks to the Dollar and we could see EUR/USD test 1.0700 before Christmas. Anyway, volatility should become significantly thinner from Wednesday/Thursday, with today’s BoJ announcement having been the last major event in markets.”